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2022 (9) TMI 1461 - HC - Income TaxReopening of assessment u/s 147 - reasons to believe that income had escaped tax - fictitious loan obtained - whether the notice issued u/s 148 deserves to be quashed or set aside for any reason whatsoever? - HELD THAT:- Search was conducted in the case of M/s Dishman group of Ahmedabad and it was found that said group had indulged in huge transactions of bogus loans and advances and the ADIT's note concluded that loans and advances are received by the assessee, present writ applicant from the said M/s Dishman company as such it implies the assessee had given equal cash to M/s Dishman and was of the view that such transactions are to be construed from the angle of applicability of Section 69A apart from being treated as unexplained credits, wherever applicable. It is this fact which persuaded the AO to issue the notice stating thereunder that accommodation entry in the form of fictitious loan was reflected from M/s Dishman Pharmaceuticals to the assessee. The assessee not only in its objections statement filed to the reopening of the assessment has stated that there was no such transaction and even the books of accounts which formed part and parcel of the assessment order passed u/s 143(3) did not disclose any such loan transaction for the assessment year 2013 - 2014 insofar as the assessee is concerned. In the absence of any foundational facts, the reasons recorded for reopening of the assessment on the premises that AO had reason to believe that income had escaped to assessment and thereby there is tax evasion has to be necessarily held as a myth and it cannot be countenanced and without any foundation. Thus, without due application of mind, the AO could not have issued the impugned notice. On this short ground itself, the impugned notice is liable to be quashed. There is no foundation in the notice which formed the basis on which the AO proposed to reopen the assessment for the assessment year 2013 - 2014. Hence, point formulated hereinabove deserves to be answered in favour of the petitioner - assessee.
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